Yahoo threatens Facebook with lawsuit over patent rights

A new patent war is brewing after Yahoo demanded licensing fees from Facebook for the use of its technology.

Yahoo said it had a responsibility to protect its intellectual property (Picture: AP)

Yahoo has threatened the social-networking website with legal action if it does not recognise its claim on up to 20 patents relating to Facebook’s adverts, privacy controls, news feed and messages.

‘We must insist that Facebook either enter into a licensing agreement or we will be compelled to move forward unilaterally to protect our rights,’ a statement from Yahoo, which first broke the story to the New York Times, said.

‘Yahoo has a responsibility to its shareholders, employees and other stakeholders to protect its intellectual property.’

Facebook said it could not provide a full response to the claims as it had only just been made aware of them.

‘Yahoo contacted us at the same time they called the New York Times and so we haven’t had the opportunity to fully evaluate their claims,’ a spokesperson said.

Facebook’s looming IPO could eventually value the company in excess of $100 billion (Picture: AP)

The technology sector is currently embroiled in a range of patent battles involving brands such as Apple, Samsung and Microsoft.

But Yahoo’s threatened action marks the first time the social networking sector has become involved in the latest raft of lawsuits.

The Yahoo claims come a month after Facebook said it hoped to raise $5 billion (£3.14 billion) in an initial public offering, which analysts speculate could value the company at up to $100 billion (£63 billion).

Prior to Google’s stock market flotation in 2004 it settled a patent infringement dispute with Yahoo by issuing it with 2.7 million shares.

Yahoo, an iconic company of the first stage of web development that has since lost its lustre, has faced an uncertain future since a leaked memo from co-founder Jerry Yang indicated it could be up for sale.

It has also become increasingly dependent upon Facebook itself for traffic after Yahoo News was integrated into the website last autumn.